Raising Additional Buyer’s Stamp Duty rates and Tightening Loan-To-Value Limits
– 5 July 2018
- The current ABSD rates for Singapore Citizens (SC) and Singapore Permanent Residents (SPR) purchasing their first residential property will be retained at 0% and 5% respectively.
- The following changes to ABSD rates:
a. Raise ABSD by 5%-points for all other individuals; and
b. Raise ABSD by 10%-points for entities; and
c. Introduce an additional ABSD of 5% that is non-remittable under the Remission Rules (payable on the purchase price or market value, as applicable) for developers purchasing residential properties
for housing development.
- LTV limits will be tightened by 5%-points for all housing loans granted by financial institutions. These revised LTV limits do not apply to loans granted by HDB.
Table 1: Adjustments to ABSD Rates for Residential Property:
|Rates on or before 5 July 2018||Rates on or after 6 July 2018|
|SCs buying 1st residential property||0%||0%
|SCs buying 2nd residential
|SCs buying 3rd & subsequent
|SPRs buying 1st residential property||5%||5%
|SPRs buying 2nd & subsequent
|Foreigners buying any residential
|Entities buying any residential
# As entities, developers will also be subject to the ABSD rate of 25% for entities. Developers may apply for remission of this 25% ABSD, subject to conditions (including completing and selling all units within the prescribed periods of 3 years or 5 years for non-licensed and licensed developers respectively). Details are provided under the Stamp Duties (Non-licensed Housing Developers) (Remission of ABSD) Rules and the Stamp Duties (Housing Developers) (Remission of ABSD) Rules.
^ Developers refer to entities which engage in the business of construction and sale of housing units.
* This new 5% ABSD for developers is in addition to the 25% ABSD for all entities. This 5% ABSD
will not be remitted, and is to be paid upfront upon purchase of residential property.
Table 2: Revised LTV Limits on Housing Loans Granted by Financial Institutions:
|1st Housing Loan||2nd Housing Loan||From 3rd Housing Loan|
|Individual Borrowers LTV Limit||Existing Rules
80%; or 60% if the loan tenure is more than 30 years* or extends past age 65Revised Rules
75%; or 55% if the loan tenure is more than 30 years* or extends past age 65
50%; or 30% if the loan tenure is more than 30 years* or extends past age 65Revised Rules
45%; or 25% if the loan tenure is more than 30 years* or extends past age 65
40%; or 20% if the loan tenure is more than 30 years* or extends past age 65Revised Rules
35%; or 15% if the loan tenure is more than 30 years* or extends past age 65
|Minimum Cash Down Payment
No change to existing rules
|5%; or 10% if the loan tenure is more than 30 years* or extends past age 65||25%|
Rules on seller’s stamp duties eased among changes to property cooling measures
– 10 Mar 2017
- Home owners will only have to wait 3 years before selling their properties to avoid paying seller’s stamp duties (SSD).
- With effect from Saturday (Mar 11), those who sell their properties within 3 years will also pay less in seller’s stamp duties (SSD).
- The Total Debt Servicing Ratio (TDSR) will also be eased. Currently, property loans should not exceed a TDSR threshold of 60%. With the easing in rules, the TDSR will no longer apply to mortgage equity withdrawal loans with LTV ratios of 50% and below.
Joint Press Release on Measures Relating to Residential Property:
Existing and new Seller’s Stamp Duty (SSD) rates for residential properties
|SSD Rates on the actual price or market value based on date of purchase or date of change of zoning/use|
|14 Jan 2011 to 10 March 2017 (both dates inclusive)||On and after 11 March 2017|
|Holding Period||Up to 1 year||16%||12%|
|More than 1 year and up to 2 years>||12%||8%|
|More than 2 years and up to 3 years||8%||4%|
|More than 3 years and up to 4 years||4%||No SSD payable|
|More than 4 years||No SSD payable|
Additional Measures to Ensure a Stable and Sustainable Property Market
– 11 Jan 2013 07:00 PM
Measures Applicable to all Residential Property
The following measures will take effect on 12 January 2013:
a) Additional Buyer’s Stamp Duty (ABSD) rates will be:
i) Raised between five and seven percentage points across the board.
ii) Imposed on Permanent Residents (PRs) purchasing their first residential property and on Singaporeans purchasing their second residential property.
b) Loan-to-Value limits on housing loans granted by financial institutions will be tightened for individuals who already have at least one outstanding loan, as well as to non-individuals such as companies.
c) Besides tighter Loan-to-Value limits, the minimum cash down payment for individuals applying for a second or subsequent housing loan will also be raised from 10% to 25%.
The measures listed above will not impact most Singaporeans buying their first home. Some concessions will also be extended to selected groups of buyers, such as married couples with at least one Singaporean spouse who are purchasing their second property and will sell their first residential property.
These new ABSDs and loan rules are significant, but they are temporary. They are being imposed to cool the market now, and will be reviewed in future depending on market conditions.
The Government is also introducing measures to further moderate the demand for HDB flats
a) Tighter eligibility for loans to buy HDB flats:
i) MAS will cap the Mortgage Servicing Ratio (MSR) for housing loans granted by financial
institutions at 30% of a borrower’s gross monthly income.
ii) For loans granted by HDB, the cap on the MSR will be lowered from 40% to 35%.
b) PRs who own a HDB flat will be disallowed from subletting their whole flat.
c) PRs who own a HDB flat must sell their flat within six months of purchasing a private residential property in Singapore.
An additional measure will take effect on 1 July 2013 to tighten the terms for granting HDB loans and the use of CPF funds for the purchase of HDB flats with remaining leases of less than 60 years.
Cooling Measure for the Industrial Property Market: Seller’s Stamp Duty
With effect from 12 January 2013, the following SSD rates will be imposed on industrial properties and land bought and sold within three years of the date of purchase:
a) SSD at 15% if the property is sold in the first year of purchase, i.e. the property is held for one year or less from the date of purchase.
b) SSD at 10% if the property is sold in the second year of purchase, i.e. the property is held for more than one year and up to two years from the date of purchase.
c) SSD at 5% if the property is sold in the third year of purchase, i.e. the property is held for more than two years and up to three years from the date of purchase.
Summary of 7th Property Cooling Measures, January 2013
Procedure of Booking Units New Launches
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